The initial claiming process is automatic. But as noted in the article, the uploader then has an opportunity to dispute the claim. The rights holder is then supposed to manually verify it and either approve or dismiss it. The problem is that there is no penalty for just approving every claim after "reviewing" it. Contrast this to the DMCA process, where after the uploader files a counter claim the rights holder must file a court order in order to keep the material down.

At the moment it's a terribly one-sided process that allows big media companies to profit for absolutely no reason. Fining companies for approving disputed claims in error seems like a pretty good solution.